The emerging field of nanotechnology has a potential revolutionary impact on basic understanding, visualization and therapeutic applications in neuroscience because of the size and various conjugation and functionalization capabilities of nanomaterials.There is also the possibility of the very small nanoparticles from environment entering the biological systems leading to potential toxicity.We are investigating both the beneficial and the possible harmful aspects of the interaction between nanomaterials and neurons at cellular level.We used in vitro models of neuronally differentiating PC 12 cells and sensory neurons from Dorsal Root Ganglion of rats in our experiments.Our results show that (i) carbon nanotubes provide a good substratum and enhances neurite growth, (ii) magnetic nanotubes can be used to provide nerve growth factor to neurons, (iii) nanowire electrodes are neuron compatible, and (iv) nanoparticles introduced into the naso pharynx and larynx are retrogradely transported to neurons innervating the upper respiratory tract and lungs indicating the ease with which nanoparticles enter our body.Currently experiments are underway in our laboratory (a) to use nanotubes for regeneration in spinal cord injury in rat and (b) for subcellular localization of ingested nanomateriaI and to determine the effects of such localization on neuron viability in rat.Thus specific, biocompatible nanomaterials appear to be very promising for developing novel devices towards neuroscience applications while one has to be very careful in choosing the right material for the appropriate application.